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A company has two products: standard and deluxe. The company expects to produce 35,618 Standard units and 37,482 Deluxe units. It uses activity-based costing
A company has two products: standard and deluxe. The company expects to produce 35,618 Standard units and 37,482 Deluxe units. It uses activity-based costing and has prepared the following analysis showing budgeted cost and cost driver activity for each of its three activity cost pools. Budgeted Activity of Cost Driver Budgeted Standard Deluxe OH Cost Activity 1: $ 93,000 2,500 Purchases 5,250 Purchases Purchasing Activity 2: Designing $ 92,000 4,500 Designs 5,500 Designs Activity 3: Shipping $ 87,000 3.000 Orders 2,800 Orders Required: Make a Job Cost Sheet for the Standard Units. Use the following Direct Materials and Direct Labor information. Direct Materials $5,467 Direct Labor $7,187 For Overhead, computer overhead rates for each of the three activities. Hint, you will divide each activity's budgeted cost by the TOTAL amount of that activity's cost driver. So you will need to add Purchases for Standard and Deluxe to get the total denominator for that activity. (Round activity rate and cost per unit answers to 2 decimal places.) Your Job Cost Sheet will include:
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